Saudi Arabian Oil Company signed an agreement to acquire remaining 50% stake in ARLANXEO Holding B.V. from LANXESS Aktiengesellschaft for 1.5 billion.
August 08, 2018
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Saudi Arabian Oil Company signed an agreement to acquire remaining 50% stake in Arlanxeo Holding B.v. from LANXESS Aktiengesellschaft (XTRA:LXS) for 1.5 billion on August 8, 2018. LANXESS expects to receive approximately 1.4 billion in cash after deducting debt and other financial liabilities for its 50% share. Post-completion, Arlanxeo will be wholly owned by Saudi Arabian Oil Company. Arlanxeo generated sales of around 3.2 billion in 2017. The transaction is subject to approval from relevant antitrust authorities and consultation with the competent employee representative bodies. The transaction has been approved by the Boards of both Saudi Arabian Oil Company and LANXESS. On October 18, 2018, the transaction has been approved by the General Superintendence of the Brazilian Antitrust Authority. EU Commission approved the transaction on October 25, 2018. The transaction is expected to complete on December 31, 2018. LANXESS plans to use the proceeds to strengthen its financial basis and reduce net financial debt.
Matthias Horn, Murad Daghles, Gottfried Breuninger, Jürgen Schindler, Jean-Claude Rivalland, Dirk Schade, Olivier Picquerey, Thyl Haßler, Anna Kraling, Conrad Schulte-Wintrop, Sander Schouten, Heleen van der Weijer, Mathilde Lapostolle and Fabio Borggreve of Allen & Overy LLP acted as legal advisors to Saudi Arabian Oil Company. Ralph Kogge, Kai Hasselbach, Shawn der Kinderen, Maximilian Lasson, Theresa Ehlen, Bert Spijkervet, Sezer Gülcü, Helmut Bergmann, Lilly fiddler, David Beutel, René Döring, Christel Cacioppo and Désirée Kemperink of Freshfields acted as legal advisors for LANXESS. HSBC acted as financial advisor to Saudi Arabian Oil Company.
Saudi Arabian Oil Company, also known as Saudi Aramco, is a Saudi Arabia-based integrated oil and gas company. The Companyâs primary operating segments are the Upstream segment and the Downstream segment. The Upstream segmentâs activities consist of exploring for, developing and producing crude oil, condensate, natural gas and natural gas liquids (NGLs). The Downstream segmentâs activities consist primarily of refining and petrochemical manufacturing, supply and trading, distribution and power generation. The Downstream segmentâs other business activities include base oils, lubricants and retail operations. The Companyâs chemicals business spans from production of basic chemicals, such as aromatics, olefins and polyolefins to complex products, such as polyols, isocyanates and synthetic rubber. The Company is represented in three global energy markets of Asia, Europe and North America.
Saudi Arabian Oil Company signed an agreement to acquire remaining 50% stake in ARLANXEO Holding B.V. from LANXESS Aktiengesellschaft for €1.5 billion.